In this second 90 second guide we look at the car insurance term No Claims Discount (NCD). You may already have come across NCD, including associated terms such as no claims bonus, protected and named driver, among others.
If you are a first time driver you will possibly already be aware of the fact that motor insurers in the UK allow premium discounts for those policyholders with claims-free driving records.
The motor insurance market in the UK is fiercely competitive with insurers and providers competing for your business. Insurers will attempt to entice you by offering substantial (no claims) discounts for motorists with a claims-free record.
The actual level of discount varies according to the class of vehicle insured and driver profile. Motorists with over 4/5 years driving experience with no claims, can often claim a reduction of up-to 55-75% over the standard policy premium.
In general the maximum number of no claims bonus years you can claim is 5. Some insurance companies will deliver further discounts for up to 6/7/8 years claim free driving but this is rare.
Drivers can’t share a NCB earned on one car between two cars.
Drivers just starting out on their motoring journey can examine the deals from insurers offering accelerated policies. This is where the policyholder can earn no claims bonus in 10 months rather than 12.